AMR bankruptcy?
#12
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Joined APC: Sep 2011
Posts: 151
#14
Gets Weekends Off
Joined APC: Dec 2009
Position: Capt
Posts: 2,023
Let me tell you a little 401K story, friend purchased 50k shares of AMR at like 1.5 last time AMR was flirting with BK in 2003 ( I think) and the he sold at high 30's, Yeah do the math. Was told he had the highest 401k at NWA. I'm just saying the time to buy MAY be when the blood seems to be flowing.
#15
Extremely high volume and large price drop today. Down 30% in one day.
AMR: Summary for AMR Corporation Common Stock- Yahoo! Finance
Something is up behind the scenes. What, nobody knows....
AMR: Summary for AMR Corporation Common Stock- Yahoo! Finance
Something is up behind the scenes. What, nobody knows....
#16
As with us (DAL), eventually all of the threats by MGT and downgrades by the analysts become self-fulfilling prophecies. Sadly, an AMR BK will most likely spell the end of the pension. I think its a crime that the employees who've given their careers lose out while the lawyers and consultants who game this system enrichen themselves. Best of luck guys! I hope it doesn't get to this point for you.
#17
Gets Weekends Off
Joined APC: Aug 2010
Posts: 2,530
Let me tell you a little 401K story, friend purchased 50k shares of AMR at like 1.5 last time AMR was flirting with BK in 2003 ( I think) and the he sold at high 30's, Yeah do the math. Was told he had the highest 401k at NWA. I'm just saying the time to buy MAY be when the blood seems to be flowing.
#18
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Joined APC: Oct 2010
Position: IAH 737 CA
Posts: 690
AMR shares decline as pilot retirements spike - MarketWatch
AMR Shares Decline As Pilot Retirements Spike
By Christopher Hinton, MarketWatch
WASHINGTON (MarketWatch) — Shares of American Airlines parent AMR Corp. plunged to record low Monday before a trading halt after reports of a sharp jump in pilot retirements since August amid anticipation of a potential bankruptcy.
In an emailed statement, AMR said bankruptcy was “not our goal or our preference.”
Shares of AMR AMR -23.76% fell as much as 33% to $1.75 each, trading below its 2003 trough, when a steep drop in demand led to a sharp contraction in revenue. The NYSE Arca Airline Index declined 6.5%, while the benchmark Standard & Poor’s 500 Index slumped 1.4%.
AMR’s stock was halted for a short time Monday afternoon before resuming trade.
“We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further [depresses] the stock price,” said Ray Neidl, an analyst with Maxim Group LLC.
“I still believe that AMR management wants to avoid filing,” he said.
In August, 111 AMR pilots retired, up sharply from the dozen monthly retirements typically seen. In September, 129 pilots retired.
“While more of our pilots than might normally be expected made the decision to retire in on October 1, we expect to operate our schedule with minimal customer inconvenience,” AMR said.
Last month the company said it would trim an additional 0.5% from its fourth-quarter capacity amid concerns of a slowing economy and traffic growth.
A spokesperson from the Allied Pilots Association, which represents AMR pilots, said that though it was possible the jump in pilot retirements was tied to concern over a possible AMR bankruptcy, the predominant factor is overall volatility in the stock market.
“A portion of their retirement plan is in a defined contribution, and that is not vulnerable to bankruptcy,” said APA spokesman Greg Overman. “The defined-benefit-plan portion is a bit different, and pilots have the option to take a lump sum or an annuity that is vulnerable to bankruptcy, [and] pilots overwhelming pick the lump sum.”
As of Sept. 1, some 500 pilots were over the age of 60 and eligible for retirement, and many had been looking for a reason to get out, said Overman. “Many of the pilots don’t want their fortunes tied to the fortunes of the airline,” he said.
The Ft. Worth, Texas–based carrier has long been considered a potential bankruptcy candidate by Wall Street because of its high cost structure. It was also one of the few major airlines not declare to bankruptcy in the wake of the terrorist attacks of Sept. 11, 2001.
AMR Shares Decline As Pilot Retirements Spike
By Christopher Hinton, MarketWatch
WASHINGTON (MarketWatch) — Shares of American Airlines parent AMR Corp. plunged to record low Monday before a trading halt after reports of a sharp jump in pilot retirements since August amid anticipation of a potential bankruptcy.
In an emailed statement, AMR said bankruptcy was “not our goal or our preference.”
Shares of AMR AMR -23.76% fell as much as 33% to $1.75 each, trading below its 2003 trough, when a steep drop in demand led to a sharp contraction in revenue. The NYSE Arca Airline Index declined 6.5%, while the benchmark Standard & Poor’s 500 Index slumped 1.4%.
AMR’s stock was halted for a short time Monday afternoon before resuming trade.
“We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further [depresses] the stock price,” said Ray Neidl, an analyst with Maxim Group LLC.
“I still believe that AMR management wants to avoid filing,” he said.
In August, 111 AMR pilots retired, up sharply from the dozen monthly retirements typically seen. In September, 129 pilots retired.
“While more of our pilots than might normally be expected made the decision to retire in on October 1, we expect to operate our schedule with minimal customer inconvenience,” AMR said.
Last month the company said it would trim an additional 0.5% from its fourth-quarter capacity amid concerns of a slowing economy and traffic growth.
A spokesperson from the Allied Pilots Association, which represents AMR pilots, said that though it was possible the jump in pilot retirements was tied to concern over a possible AMR bankruptcy, the predominant factor is overall volatility in the stock market.
“A portion of their retirement plan is in a defined contribution, and that is not vulnerable to bankruptcy,” said APA spokesman Greg Overman. “The defined-benefit-plan portion is a bit different, and pilots have the option to take a lump sum or an annuity that is vulnerable to bankruptcy, [and] pilots overwhelming pick the lump sum.”
As of Sept. 1, some 500 pilots were over the age of 60 and eligible for retirement, and many had been looking for a reason to get out, said Overman. “Many of the pilots don’t want their fortunes tied to the fortunes of the airline,” he said.
The Ft. Worth, Texas–based carrier has long been considered a potential bankruptcy candidate by Wall Street because of its high cost structure. It was also one of the few major airlines not declare to bankruptcy in the wake of the terrorist attacks of Sept. 11, 2001.
#19
As with us (DAL), eventually all of the threats by MGT and downgrades by the analysts become self-fulfilling prophecies. Sadly, an AMR BK will most likely spell the end of the pension. I think its a crime that the employees who've given their careers lose out while the lawyers and consultants who game this system enrichen themselves. Best of luck guys! I hope it doesn't get to this point for you.
Thoughts ?
#20
Gets Weekends Off
Joined APC: May 2010
Position: Sideways in a sim
Posts: 435
Let me tell you a little 401K story, friend purchased 50k shares of AMR at like 1.5 last time AMR was flirting with BK in 2003 ( I think) and the he sold at high 30's, Yeah do the math. Was told he had the highest 401k at NWA. I'm just saying the time to buy MAY be when the blood seems to be flowing.
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